Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks up for fifth session on Wall Street surge

JIJI

Stocks closed higher for the fifth straight session on the Tokyo Stock Exchange on Thursday following an overnight surge in U.S. equities.

The 225-issue Nikkei average rose 85.58 points, or 0.39 percent, to finish at 22,262.60. It advanced 224.62 points Wednesday.

The Topix index of all first-section issues closed up 5.81 points, or 0.35 percent, at 1,659.47, after climbing 9.50 points the previous day.

The Tokyo market opened firmer following Wall Street’s rise after U.S. Federal Reserve Chairman Jerome Powell signaled in his lecture Wednesday that the pace of interest rate hikes may slow, market sources said. The Nikkei average gained more than 250 points briefly after the opening bell.

In afternoon trading, the Tokyo market cut much of its earlier gains in line with the yen’s strengthening against the dollar.

An official of a bank-linked securities firm indicated that receding concerns over the U.S.-China trade war following a New York Times report Tuesday were behind Thursday’s advance.

According to the report, a meeting between U.S. President Donald Trump and Chinese President Xi Jinping expected for Saturday could lead to “a truce” in the trade war.

Commenting on the Tokyo market’s sluggishness in the afternoon, Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management Co., said investors “found it difficult to step up purchases before the (U.S.-China) summit.”

An official at a midsize securities firm said selling on a rally weighed on the market’s topside.

Rising issues outnumbered falling ones 1,301 to 730 in the TSE’s first section, while 86 issues were unchanged.

Volume fell to 1.302 billion shares from 1.388 billion shares on Wednesday.

High-tech names, including Sumco Corp. and Murata Manufacturing Co., were buoyant after their U.S. peers fared well in New York on Wednesday.

Mobile phone carrier SoftBank Group Corp. and air conditioner-maker Daikin Industries were among other major gainers.

By contrast, Osaka Titanium Technologies Co. met with selling after announcing Wednesday a decision to withdraw from the polysilicon business.

Cosmetics maker Shiseido Co. and supermarket and convenience store operator FamilyMart Uny Holdings Co. were also downbeat.

In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average inched up 10 points to end at 22,240.